Sotheby’s International Realty: Setting the Standard for Luxury Real Estate

Founded in 1976 by the prestigious Sotheby’s auction house, Sotheby’s International Realty quickly emerged as a premier name in luxury real estate, specializing in the sale and marketing of upscale residential properties. The brand was created to bring Sotheby’s tradition of excellence and trusted service into the real estate market.

In 2004, Sotheby’s International Realty formed a strategic alliance with Realogy Holdings Corp., now known as Anywhere Real Estate, Inc. This collaboration launched a global franchise system designed to broaden the brand’s reach and influence.

Through franchising, Sotheby’s International Realty empowers qualified brokerages and individuals to operate under its name, offering them access to extensive operational, marketing, recruiting, education, and business development support.

Training

Sotheby’s International Realty® franchise system provides the following types of training:

1. Orientation Program
   After signing the Franchise Agreement, the Responsible Broker or an agreed-upon individual must attend an Orientation program. This training introduces the franchise System and covers key operational subjects. Orientation is mandatory and can be held either in person or virtually.
2. Optional Education Courses
   The Franchisor may offer optional learning programs, courses, seminars, and conferences at various times and locations. Participation in these programs requires payment of course fees, along with travel and living expenses, by the franchisee.
3. Online Learning Platform
   The Franchisor makes available an online learning platform featuring various learning materials and resources. These resources are designed to support franchisees and their independent sales associates in operating under the Sotheby’s International Realty® System.
4. Continuing Assistance
   The Franchisor provides continuing assistance in the form of written materials, consultations via telephone or in person, and other communications. This guidance focuses on compliance with the System and maintaining brand standards, though it is not intended to control daily operations.

Territory Protection

Sotheby’s International Realty® does not offer exclusive territory protection to its franchisees. Franchisees are allowed to operate only from the Office locations identified in their Franchise Agreement, but they may face competition from other franchisees, company-owned outlets, and other distribution channels owned by the Franchisor.

Although the Franchisor may, at its discretion, grant limited protected areas, these are not guaranteed and must be formally documented. If limited protected areas are granted, they come with specific terms and can be revoked if certain conditions, such as maintaining a required level of gross revenue, are not met.

The Franchisor maintains the right to introduce new franchises even within close proximity unless a specific, written protection agreement is in place. Therefore, franchisees under Sotheby’s International Realty® should not expect automatic or permanent territorial exclusivity.